Meesho sees profit booking after hitting fresh high; m-cap briefly crosses Rs 1 lakh crore-mark

Meesho shares rise in Tuesday's trade. 

Meesho shares witnessed profit booking on Thursday after hitting a fresh 52-week and all-time high on higher volumes. The sharp rise in the stock also briefly took the company’s market capitalisation past the Rs 1 lakh crore mark during the session.

On the National Stock Exchange (NSE), Meesho shares surged as much as 7.98 percent to hit a high of Rs 233.60 apiece. The stock had opened with a gap-up gain of about 4.5 percent.

However, the stock later pared gains amid profit booking and was trading at Rs 212.45 per share, down 1.81 percent, at 11.35 am.

In the previous session, the newly listed shares of Meesho had jumped 20 percent to hit the upper circuit on December 17 after UBS initiated coverage on the stock with a ‘Buy’ rating and a target price indicating strong upside potential from current levels.

UBS initiated a ‘Buy’ call on the shares of Meesho, with a target price of Rs 220 per share.

UBS further sees order frequency increasing from 9.2x to 14.7x. However, average order value may decline from Rs 274 to Rs 233 as logistics efficiencies are passed on.

The e-commerce platform made a strong debut on December 10, listing at Rs 162.50 per share on the NSE, a premium of over 46 per cent to the IPO price of Rs 111.

The Rs 5,421-crore initial public offering of Meesho was subscribed 79 times. The stock is currently trading around 32 per cent higher than its listing price.

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